Matrixport: Escalation in Middle East Situation May Trigger a Tactical Rebound in Risk Assets

Odaily News Matrixport released its chart for today, stating that market sentiment remains tense. However, as the market has been trading on the escalation of the Middle East situation for a considerable period, related risks have been largely priced in. The current oil price reflects a geopolitical premium of approximately $8 to $10 per barrel. If the subsequent process of conflict de-escalation proceeds faster than the market's general concerns, risk assets may experience a tactical rebound.

From a technical perspective, after experiencing large-scale position liquidations, Bitcoin has not seen a further significant decline, demonstrating continued resilience. As the market enters a consolidation phase, the RSI is steadily rising, with signs of a bullish divergence gradually emerging. As long as this indicator maintains its oscillating upward trend, the downward momentum of the price may be suppressed. This also implies that continuing to incrementally increase short positions at current levels may see a weakening risk-reward ratio at the margin.